Is The NanoCard Bitcoin’s Killer App?

One of the most coined phrases in the past two years is whether or not we will ever discover “Bitcoin’s killer app”.  Every major technological innovation has one “killer app” to gain mass adoption and mainstream adoption.  In the case of Bitcoin, the search for this “killer app” is far from over.  Yet there are some candidates wanting to claim that title right now.

The Bitcoin NanoCard – Not Your Average Prepaid or Debit CardCCEDK NanoCard

A little while ago, Danish cryptocurrency exchange CCEDK announced the Bitcoin NanoCard.  This project is made possible thanks to a strong partnership with other parties, including Bit-X, Cryptonomex, and BitShares.  But what makes this Bitcoin NanoCard different from traditional prepaid and debit cards?

One thing that makes the Bitcoin NanoCard so interesting is how it bridges the gap between disruptive digital currency and existing financial infrastructure.  Giving consumers an option to spend their Bitcoin wherever major credit cards are accepted is beneficial to the consumer, which will help raise awareness of Bitcoin usage.

However, the Bitcoin NanoCard does not need to be pre-funded before it can be used to spend Bitcoin.  As a result, consumers can convert their Bitcoin to fiat currency value at the time of purchase, protecting them from price volatility. Plus, this is in line with Satoshi Nakamoto’s ideology when Bitcoin was created, to give customers control of their funds at any time, regardless of their location.

Unlike other offerings available on the market, the Bitcoin NanoCard will be making welcome changes to the inactivity fee structure.  Debit card providers charge an inactivity fee for balances below 5 BTC unless the customer makes five [or more] transactions on a monthly basis, but CCEDK plans to change that in the near future.  In fact, CCEDK plans to blur the line between your wallet and your NanoCard, and combine the two into one service. In practical terms, your exchange account is your wallet, there is no difference between the two. As a result, leaving money on your exchange account will be the same as keeping the funds in your wallet.

Note from the Author: Most people would prefer not to store such a large amount of BTC on their exchange account, but that will no longer be something to worry about soon.

Pegged Assets, Multisignature Security, and SmartCoinsBitShares

Due to the partnerships between CCEDK and partners such as BitShares, a lot of interesting features and options can be tied to the Bitcoin NanoCard.  CCEDK CEO, Ronny Boesing, is working on a pegged assets system, which will address the Bitcoin price volatility.  This pegged assets system will be built on top of BitShares, giving customers the ability to link the value of a digital coin to a real-world currency or commodity.

On the topic of security, BitShares will play an integral role as well.  Thanks to their Dynamic Account Permissions feature, a hierarchical structure is created to reflect the organization of permissions in real life.  On top of that, it also makes it easier to enable multi-user control, which can, in turn, virtually eliminate any possibility of theft due to hacking.

“New security measures will provide the technology that will enable us to become an exchange, Bitcoin wallet and vault, all in one.  You won’t have to worry about our exchange being hacked or whether it is honest or solvent.  Everything about our new accounts will be an open book, and you will control the keys to your own funds, even while they are on our exchange.”  – CCEDK CEO Ronny Boesing told DigitalMoneyTimes.

Last but not last, BitShares’ SmartCoins will also address the volatility issue.  SmartCoins will be available as a NanoCard funding method in the next few months, allowing customers to safely store their digital currency balances pegged to fiat currencies such as USD, EUR, and CNY.

Source: Press Release via Email

Images courtesy of CCEDK, BitShares, and Shutterstock